The European market for data acquisition systems (Report 3525): Y2K compliance requirements to trigger robust growth in data acquisition system markets

Citation

(1999), "The European market for data acquisition systems (Report 3525): Y2K compliance requirements to trigger robust growth in data acquisition system markets", Sensor Review, Vol. 19 No. 3. https://doi.org/10.1108/sr.1999.08719cab.009

The European market for data acquisition systems (Report 3525): Y2K compliance requirements to trigger robust growth in data acquisition system markets

The European market for data acquisition systems (Report 3525): Y2K compliance requirements to trigger robust growth in data acquisition system markets

Keywords Data

The European data acquisition systems market, amassing revenues worth US$419.4 million in 1998, is expected to continue to experience significant growth. However, market expansion is anticipated to slow down at the beginning of the new millennium, as the market satisfies many renewal and modernisation programmes that may have been planned for compliance to the Y2K problem.

According to a new study by Frost & Sullivan, the international marketing consulting company, strategies to survive in the difficult trading conditions include the strengthening of product quality through strategic mergers and take-overs, investment in research and development, product and price leadership, and the integration of new technologies.

Brian Flannery, Research Analyst at Frost & Sullivan, comments: "The continuing spread of PCs in industrial applications is resulting in comparatively strong growth in the plug-in board and third-party software markets. A proliferation of low-cost, entry level plug-in boards is making data acquisition available to a growing number of end-users who previously could not afford them."

The need for existing equipment and systems to be Y2K compliant, coupled with end-user demand for enhanced product features and efforts to obtain optimum levels of efficiency, are expected to buoy the market for data acquisition systems, forecast to reach a revenue level of US$642.4 million by 2005.

One of the most crucial factors impacting the maturing data acquisition systems market is the increasing competition between rival technologies in certain sectors of the market, which will very often be in direct competition with each other, eroding their respective revenues through fierce price competition.

Plug-in boards represent by far the largest segment by revenues in this market, holding a share of 41.0 per cent in 1998. Owing to the increased demand for these products and the rise in popularity for PC-based solutions, this share is expected to increase to 47.4 per cent in 2005 (see Figure 3).

Figure 3 The European Market for data acquisition systems (percent of revenues by product type - forecast for the year 2005)

A potent element in this dynamic sector is the massive proliferation of microcomputers, particularly personal computers that have been adapted for industrial use with enhanced features, across many applications. The current explosion in PC sales, coupled with the increasing trend towards miniaturisation, are poised to continue driving growth in the plug-in boards market.

Furthermore, the huge demand for integrated data acquisition systems can also, to a large part, be attributed to the personal computer revolution as it coincides with their rise in popularity. Many of the users of computer-based data acquisition systems are not necessarily engineers (or even computer literate), and even if they are technically proficient, lack the time and resources required to configure or service their own system. Turnkey suppliers offer end-users a system that has been configured and debugged.

Third-party software constitutes the third largest segment by revenues in the total European market for data acquisition systems and is forecast to bolster its position in the overall market, supported by the steady growth Frost & Sullivan anticipates as these products rise in popularity in line with PC based solutions.

The German market held by far the largest share of the market, predominately as a result of its large industrial sector, with 28.0 per cent of the total revenues in 1998. The share is expected to rise slightly due to increased levels of investment in replacements and updates of data acquisition systems throughout the substantial and mature German market.

France, Scandinavia, and to a lesser degree the United Kingdom and Iberia, are all poised to see an increase in their revenue shares, although this is expected to be minimal. Italy and the Rest of Europe are all expected to experience a slight fall in their country market shares, suffering as a consequence of the growth forecast for the massive German market.

The total data acquistion systems market is dominated by a relatively small number of suppliers which supply products in a variety of market segments across Europe through a wide network of outlets and suppliers, with the vast majority that simply concentrate and focus on one area and geographic region.

Brian Flannery concludes: "The total data acquisition systems market is expected to be further influenced by the changing attitudes of customers. This includes the increasing expectation from end-users for sophisticated data acquisition systems, both portable and fixed equipment, as customers become aware of the possible benefits that can be gained from using advanced technology."

Report Code: 3525, Publication Date: March 1999, Price: US$3,950.